Federal Reserve Settles with State Bank to Resolve National Flood Insurance Act Allegations

​​On September 10, the Board of Governors of the Federal Reserve System announced execution of a settlement in an enforcement action against a state member bank in connection with alleged violations of Section 102(f) of the National Flood Insurance Act (NFIA). Where a pattern of practice of violations of the NFIA is found, civil penalties of up to $2,000 per violation may be imposed. The bank agreed to a civil money penalty of $56,205 to resolve the enforcement action, without any “finding on any issue of fact or law.”